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BigorU [14]
2 years ago
11

Which cmo tranche will be offered at the lowest yield? a plain vanilla b targeted amortization class c planned amortization clas

s d companion
Business
1 answer:
astra-53 [7]2 years ago
8 0

A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority.

<h3>What is a CMO tranche?</h3>

A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority. In a sequential pay CMO, interest is paid on each tranche as long as the original balance is not entirely repaid.

Tranches are segments of a CMO or other debt or instrument that are organized to split risk or classify assets according to attributes. Securities are personalized and marketable to specific investor segments because to this division and portioning.

The specification of the term structure of interest rates and a model for valuing the call risk borne by the various tranches are the two essential components of CMO valuation.

Therefore, the correct answer is option d companion.

To learn more about the CMO tranche refer to:

brainly.com/question/28240258

#SPJ4

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Include the design, creation, and delivery of a product:_______
Monica [59]

Include the design, creation, and delivery of a product option (a) i.e, primary activities.

Inbound logistics, operation outbound logistics, marketing and sales, and service are the primary activities in the value chain. Infrastructure management, human resource management, and purchasing are examples of secondary or support tasks.

A value chain is a series of tasks that a business engaged in a certain industry completes in order to offer a worthwhile product to the final consumer. Well-managed primary activities are frequently the source of a business's cost advantage because management problems and inefficiencies are reasonably simple to spot here. This indicates that the company can produce a good or service for less money than its rivals.

To know more about value chain refer to: brainly.com/question/13439824

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8 0
2 years ago
Short Company purchased land by paying $15,000 cash on the purchase date and agreed to pay $15,000 for each of the next ten year
gogolik [260]

Answer:

Option D is the correct answer,$ 88,338.48  

Explanation:

The liability reported in the balance sheet can be computed by using the pv formula in excel which is stated thus:

=-pv(rate,nper,pmt,fv)

rate is the incremental borrowing rate of 11% per year

nper is the number of payments required to settle the obligation which is 10

pmt is the amount of yearly payment in order to fully settle the debt owed which is $15,000 per year

fv is the future worth of total payments which is not unknown,hence taken as zero

=-pv(11%,10,15000,0)=$ 88,338.48  

The correct answer is $ 88,338.48  

3 0
3 years ago
Mm mjhuuuuuuuuuuuuuuuuuuuuuh
strojnjashka [21]

Answer: Mm mjuuuuuuuuuuuuuuuuuuuuuh

Explanation: Mm mjhuuuuuuuuuuuuuuuuuuuuuh

5 0
3 years ago
Read 2 more answers
1. The discount rate is the:________. a. lowest interest rate that banks can charge for loans to their most creditworthy custome
Nutka1998 [239]

Answer(1)

<em>b. interest rate at which banks can borrow reserves from the Federal Reserve</em>

Explanation:

The discount rate is known in America as the rate of interest which a central bank charges on its loans and advances to a commercial bank. This loans and advances are from the federal reserve.

Answer (2)

<em>a. more reserves, causing an increase in lending and the money supply</em>

Explanation:

Excess lending from the national reserve due to a lowered discount rate  will lead to a reserve supply excess into commercial banks throughout the economy and expands the money supply .

3 0
3 years ago
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
Katen [24]

Answer:

Predetermined manufacturing overhead rate= $240 per order

Explanation:

Giving the following information:

Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders

<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 120,000/500

Predetermined manufacturing overhead rate= $240 per order

6 0
3 years ago
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